Your IRA and 401(k) come
with an unwanted partner:
the IRS.
You can part ways with a
ROTH CONVERSION.
See if a Roth conversion works for you.
Run My Conversion NumbersHow RothWise works.
An honest, complete disclosure of what a Roth conversion would really do for you:
built from your own figures, with every tax counted, before you decide anything.
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1
Your real numbers.
Answer a few questions about your age, state, filing status and pre-tax savings. The math is run on your figures, not on a generic average.
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2
Every tax counted.
Federal income tax, your state’s income tax and IRMAA surcharges on Medicare premiums are all part of the calculation, year by year, so the cost of converting is shown as clearly as the savings.
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3
One complete picture.
You get a one-time, side-by-side look at converting versus leaving things as they are. A licensed Roth conversion expert walks you through it.
Who it’s for.
Single filers
One person, one set of retirement accounts. Your report shows what a conversion does to your lifetime taxes, your Medicare premiums and what you and your heirs keep.
Joint filers
Two people, two sets of accounts, both approaching required minimum distributions (RMDs). We blend both conversions into one plan and show how to use your tax brackets as a couple.
Here is a typical example of
tax savings and increased assets
from a Roth conversion.
THRU AGE 90
THROUGH AGE 90
SPENDABLE VALUE AT AGE 90
Illustrated example for a married couple with 1 million in IRAs, state of Texas, and a 22% effective tax rate,
growing at 7% annual rate of return. Actual results will vary.
Benefits of Executing
a Roth Conversion.
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Tax-free growth and withdrawals.
Once money is in the Roth, all withdrawals (after age 59½ and a five-year holding period) are completely tax-free.
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No required minimum distributions (RMDs).
Roth IRAs have no RMDs during the owner's lifetime. Converting reduces the pre-tax balance that generates
those forced distributions. -
Lower exposure to future tax rate increases.
If you think tax rates will be higher in the future, paying at today’s rates is beneficial.
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Managing Medicare premiums and Social Security taxation.
Roth withdrawals don’t count toward the income that determines IRMAA surcharges on Medicare premiums
or how much of your Social Security benefit is taxable. Converting in lower-income years can reduce those costs later. -
Estate planning advantages.
Heirs who inherit a Roth IRA receive distributions tax-free, though most non-spouse beneficiaries must empty
the account within 10 years. This makes Roth assets more valuable to leave behind than pre-tax assets (IRA, 401k).
Let’s run your
RothWise conversion report.
It only takes a couple of minutes.